Everything You Need To Know About ZKFair

Making transactions on Ethereum is becoming a bit of a hassle due to high gas fees and network congestion. As a result, Layer 2 scaling solutions were developed to ease the pressure on Ethereum. However, most solutions struggle with a lack of enough decentralization in their architecture and a concentration of revenue with network operators. ZKFair fixes these issues by focusing on fairness, maximum decentralization, and community involvement. This article will explore how ZKFair works and how it revolutionizes blockchain technology as we know it.

What is ZKFair?

Source: https://zkfair.io/

ZKFair is a Layer 2 scaling solution developed for Ethereum. The project is built on the foundations of ZK Rollups, which bundle hundreds of transactions into a single “proof” and validate it on the Ethereum mainnet. This method is more efficient than straight on-chain transactions, as it reduces transaction volume and costs. ZKFair is a community-run project that rewards users for their active participation and encourages engagement.

Aside from ZK Rollups, the Polygon CDK and Celestia DA‘s zero-knowledge Layer 2 technical principles form the project’s foundation. Lumoz’s rollups-as-a-service (RaaS) provides additional support to ensure that the project runs without any glitches. This initiative combines a community-based revenue-sharing model with a fully decentralized operational system. ZKFair is also the first project to feature a completely decentralized network of provers. To put it simply, these provers generate off-chain cryptographic transaction proofs.

History of ZKFair

ZKFair was launched in 2022. However, the names of the project’s founding members and other historical data are currently unavailable. Nonetheless, the project has racked up approximately $160 million in total value locked and boasts 587,000 users.

How Does ZKFair Work?

ZKFair is a Layer 2 ZK-Rollup that uses zero-knowledge proofs to bundle transactions for off-chain processing and execution. ZK-Rollups essentially declutter blockchain transaction pathways. As more transactions are made, the blockchain becomes increasingly crowded, and there may be numerous pending transactions waiting for processing. This is where ZK-Rollups come in handy. It combines multiple transactions into one and submits it to the blockchain with adequate data to prove its accuracy without revealing private information. ZK-Rollups accelerate blockchain transactions while maintaining security and reducing expenses.

ZKFair also integrated with Celestia’s Data Availability (DA) system to enhance its scalability and reduce gas costs for customers in the ZKFair ecosystem. In addition, the project also incorporated Lumoz’s NCRC (Native Cross Rollup Communication) 2.0 protocol to improve its interoperability with other Layer 2 projects. This integration enables users to access dApps directly on Ethereum.

Key Features of ZKFair

ZKFair features multiple features that help it stand out from other Layer 2 solutions. These features include:

USDC as the Gas Token

In its pursuit of the best experience for its community, ZKFair decided to incorporate the stablecoin USDC as its native token. Although some might find this choice unusual, it has numerous benefits. The use of USDC ensures security, as it is a reliable stablecoin. As a result, users can confidently engage in DeFi transactions on ZKFair since the platform can maintain a relatively stable value regardless of market volatility. This feature allows users to manage risks more effectively in a volatile market. Additionally, using USDC provides better liquidity, as it is one of the most widely used stablecoins on the Ethereum network.

Moreover, having USDC as ZKFair’s native token allows for easier interoperability with other Ethereum ecosystem projects. This helps make it easier for users to access a wide range of DeFi options. Moreover, as a cryptocurrency pegged directly to the US dollar, USDC has an advantage regarding regulation. As a result, ZKFair complies with all relevant laws and regulatory requirements by using USDC as its native token, providing users with a safer and more legitimate DeFi environment.

Decentralized Prover Network

Many Layer 2 solutions allow for faster and cheaper transactions. However, some parts of their architecture are controlled by specific factors, such as the prover, which is responsible for creating ZK proofs. Most platforms have centralized provers, often criticized for concentrating power and making the network vulnerable to collapse if a single node fails.

To address this issue, ZKFair, which provides ZK-rollup as a service, plans to use Lumoz’s proof of work (PoW) prover network. This decentralized network will be implemented soon after the platform’s mainnet launch. By allowing anyone in the community to run the prover network, ZKFair’s overall decentralization will be further enhanced.

Integration with Celestia

ZKFair is the first zkEVM project built with the Polygon CDK. Later on, ZKFair plans to migrate DA from DAC (Data Availability Committee) to Celestia. The modular DA feature Celestia offers allows users to interact with dApps in the ZKFair ecosystem at a lower cost. Celestia has a sub-linear relationship with gas prices, meaning that it becomes relatively cheaper than Ethereum as gas prices rise, thus making it more affordable than Ethereum’s gas fees.

What is ZKF?

ZKF is ZKFair’s utility token. It serves two main functions: staking and governance. When users stake ZKF, they earn rewards distributed in voZKF tokens, which enable them to vote on ZKFair’s direction and specifics of revenue-sharing entitlements, among other proposals. The token is supply-capped, meaning there is a maximum limit on the amount of tokens that can ever be created or mined.

ZKF Tokenomics

ZKF has a maximum supply of 10 billion tokens. Out of the total supply, 98.7% of the tokens were given away exclusively to members of the ZKFair community. To ensure fair distribution, ZKFair conducted two significant airdrops between December 23, 2023, and January 11, 2024. In this period, 75% of the total supply was shared as a “gas-free airdrop” to early gas fee contributors on the platform. The remaining 25% of the supply was distributed among users recently interacting with partner Layer 2 solutions, such as Polygon zkEVM, zkSync, Scroll, Linea, ZKSpace, and Lumoz.

There were no airdrops for investors or the founding team. There were no vesting periods either. The unclaimed tokens left after the airdrops by the January 11th deadline were burnt.

Merlin’s Seal

Merlin’s Seal, powered by Merlin Chain, works as a seal of assurance, verifying the integrity of cryptographic proofs that allow individuals to prove that certain information is true without revealing it.

It is a decentralized network of validators, and anyone can become a “Merlin” by staking tokens. These Merlins then work together to verify the validity of ZK-proofs submitted by applications. If a ZK-proof is deemed invalid, the Merlin who verified it will lose their stake, thus incentivizing honest participation and maintaining the network’s security.

FairLaunch

FairLaunch is a feature that allows ZKFair to pick high-potential projects with low valuations to receive 100% fair token launches via its launch pool, ensuring completely fair participation and keeping their community’s interests at heart. This launch pool provides equal opportunities for early involvement in high-potential projects.

All ZKF token holders (only on Layer 2), ZKF stakers, and .zkf domain owners are eligible to receive airdrops from ZKFair’s launch pool. Each airdrop is tailored to the tokenomic model of the specific project.

ZKFair Stake

ZKFair Stake is a program that allows users to lock their ZKF tokens to earn rewards, and participate in its governance, thus contributing to the security and decentralization of the ZKFair network.

To participate in staking, users lock their ZKF tokens for a chosen period ranging from a week to a year. The longer they stake, the higher their rewards. Stakers will earn a share of the network’s gas fees, with 75% distributed proportionally among them based on how many tokens the user stakes and for how long. This feature enables users to earn a steady stream of ZKF tokens through the dividends acquired from gas fees.

ZKFair DID

ZKFair’s Decentralized Identity (DID) feature powered by their Space.ID platform seeks to provide users with the freedom to truly own their online identity and keep it from centralized control. With ZKFair’s DID feature, ZK-proofs ensure the legitimacy of your claims without revealing any sensitive data, thus protecting your privacy.

It allows users to decide what information to store and share, as well as grant selective access to different applications and individuals. Users can log in to any dApp using their DID, and have their credentials instantly verified without relying on centralized third parties.

News on ZKFair

On February 7th, ZKFair shared its roadmap for 2024. In the first quarter, the project plans to enhance ecosystem development actively and aims to collaborate with over 200 projects, especially those consuming DeFi, gaming, and AI. They also plan to launch the ZKFair Launch pool and feature up to 3-6 carefully selected projects. They will also introduce interactive PFP NFTs.

In the second quarter, ZKFair plans to enable cross-chain transfers and transactions for BTC assets and increase its presence on more centralized exchanges. In the third quarter, ZKFair will fully integrate with Lumoz Distributed Prover Network and invite global miners to contribute their computing power to ZKFair. They will also organize hackathons and set up offline meetups to maintain connections among community members.

Is ZKF a Good Investment?

ZKFair is committed to providing fair zero-knowledge proofs for its community. The project is dedicated to decentralization and community involvement. ZKFair is heralding a new era in Layer 2 technology through its fair and impartial supply allocation. However, the cryptocurrency market is quite volatile, so it is best to do comprehensive research or consult qualified market personnel before investing in any crypto project.

Take Action on ZKF

ZKF is available for purchase from both centralized and decentralized exchanges like gate.io. Check the price here and begin trading your favorite pairs.

• ZKF/USDT